British Columbia Payday Loan Customers Pay Too Much
Payday Lenders Overcharge Customers
Cash Store Financial, a payday loan company more commonly known as Cash Store or Instaloans, was ordered by Consumer Protection British Columbia (BC) to repay excessive payday loan fees.
How Did Cash Store Financial Charge Excessive Payday Loan Fees?
Consumer Protection BC limits the amount that payday lenders can charge their customers in British Columbia to $23 for every $100 borrowed.
Cash Store Financial offered customers cash cards for an extra fee (instead of just cash), which allowed Cash Store to charge more than the $23 per $100 loan limit.
Canadians in BC Can Expect Payday Loan Refund in 90 Days
Cash Store wants to appeal the case, claiming a third party handled the cash card costs and charged customers independently of its payday lending costs.
In 2010, Consumer Protection ordered Cash Store Financial to stop offering cash cards. After Cash Store requested the decision reconsidered, Consumer Protection ruled that Cash Store Financial needed to repay consumers the extra fees -- and pay a $25,000 fine because the payday loan company never stopped charging extra for cash cards.
The Vice President of Corporate Relations for Consumer Protection gave Cash Store Financial 90 days to refund their clients and 120 days to offer proof of those refunds to Consumer Protection. As far as Consumer Protection BC knows, Cash Store has been charging customers for cash cards since 2009.
So if you borrowed a payday loan from Cash Store or Instaloans and chose a cash card, your refund should be getting to you shortly. Refund amounts may vary from $7 to $21 per cash card.
If you don't get your refund, contact Consumer Protection BC.
Originally reported by The Times Colonist